How important is the lender package in a short sale?

The short sale package can make or break the transaction. The proposal put together for the existing lender and follow up after submission are the most important two issues in getting your short sale approved and closed. You have to make certain that you submit everything the bank is looking for and you may want to submit other items that the bank has not asked for but are highly recommended. Having a complete package is key to getting your short sale looked at by the banks.

Most banks want the following items submitted as a complete package:
• Listing agreement
• Listing history
• Executed contract
• Buyer pre-approval letter or proof of funds if cash
• Preliminary HUD statement
• Hardship letter from seller
• Paycheck stubs (usually latest 2)
• Bank statements (usually last 2 months)
• Financial worksheet
• Tax returns (last 2 years)
• If you cannot include all of these items, make certain to insert a page as a placeholder for that item explaining why you have not included it in the package.

The following items will help to make a stronger package for the negotiator at the bank to review. These items together with the above items will help to make a more powerful case for the approval of the short sale.
• Cover Letter including your contact information
• Explanation of marketing you have done with a brief history of showings and feedback
• Market statistics or a BPO completed by you
• Damage and Repair Report and pictures

Remember also to make sure to put the loan number and borrower’s name on each page you forward to the bank. And of course, make sure you keep an entire package for yourself as the banks often misplace portions of your package.

If you are a seller, experiencing a hardship with your current mortgage and thinking of doing a short sale on your home, make sure you select an agent to list and sell your home who has experience with the short sale process and has successfully sold their short sale listings.

If you are a seller and wish to contact us for a FREE consultation regarding a possible short sale on your home, please call us at (425) 372-6382 or send email to timschmitz@cbbain.com